Firm Value and National Wealth


The wealth creation process of a nation cannot be seen separately from that taking place at the industry level. Hence, unless a nation is able to unleash the value creating potential of each organization, its over-all progress in this context will be significantly hampered. Incidentally for each firm to maximize its wealth creation potential, the need for private ownership of capital and well defined property rights in all sectors of an economy cannot be over-emphasized. Private sector business organizations will ensure that their managers are held accountable for the way they use the company assets, and the outcome thereof. When the firm level ownership is diffused (as in the cases of public or joint sector companies) and the majority ownership is predominantly with distant and impersonal state, there is no incentive for intra and inter-organizational cooperation for mutual benefit including wealth creation.

Since the wealth creation process of a nation is synonymous with that of its organizations, macro policies of governments of nation states must facilitate evolution and development of organizations that are focused, market driven, efficiency and change seeking, nimble-footed, and also capable of building and leveraging capabilities, all required to create wealth not only for their shareholders, but also for other stakeholders, including the government. For such value creation to take root within an organization, the external context must be right—market economy, healthy competition, transparent regulations, strong institutional frameworks in all public policy areas, clear intellectual and other property rights, freedom to access information and high ethical standards. If a nation is state is not able to put in place the required public policies in these areas and also no effort is made to simultaneously enhance managerial capabilities to create value, its wealth creation effort will always remain sub-optimal.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Smart People Add, Foolish People Take Away


The most important way we learn is by thoughtful observation. Lessons that teach us success fundamentals are available in every encounter with other people.

Consider this example. You visit a candy store and order a pound of unboxed candy. The person behind the counter puts a big scoop of candy on the scales, maybe 20 ounces, and then begins to take away your candy, piece by piece, until the weight is exactly 16 ounces.

How do you feel? Cheated. Subconsciously, you perceived the big 20-ounce pile of candy as your candy. Now, as the person behind the counter takes some of it away, you feel your candy is being stolen.

Intelligent people behind the counter use the add-to approach. They put a relatively small amount of candy on the scales, maybe 10 or 12 ounces. Then, they add a few pieces until the scale shows 16 ounces. Subconsciously, this makes you feel good because you perceive you are getting extra candy.

Sixteen ounces are still 16 ounces. But the way a pound is counted makes a mighty big difference. To be sure, computer personnel must be careful in weighing merchandise. The point is that never make the customer feel cheated.

Successful business search for creative ways to use the generous add-on tactic to increase sales. The magazine subscription that includes a free pocket calculator, a remote-control device that comes free with the purchase of a television set, and the two-for-the-price-of-one sale by a drug chain are examples. People like you and buy from you when you give more than they expect in exchange for their money.

Evidence that generosity, the add-on approach, works wonders is overwhelming. Nevertheless there are still many businesses that believe success is spelled CHEAT. Store that advertise non-existent appliances at a ridiculously low price and then try to browbeat and intimidate the customer into buying a much higher priced product are common examples. Observe such scoundrels only to learn how to succeed.

You can use the “add-to” principle in every facet of life:

  • Give unexpected, extra service to your employer and you become a candidate for more pay, for more fringe benefits, and for promotion.
  • Put something extra into your assignment at school and get a better grade.
  • Give more time to your kids and get more love and cooperation in return.
  • Show respect to the parking lot attendent and your car gets better treatment.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Process Owner


The process owner, who is responsible for reengineering a specific process, should be a senior-level manager, usually with line responsibility, who cares prestige, credibility, and clout within the company. If the leader’s job is to make reengineering happen in the large, then the process owner’s job is to make it happen in the small, at the individual process level. It is the process owner’s reputation, bonus, and career that are on the line when his or her process is undergoing reengineering.

 Most companies lack process owners, because in traditional organizations people do not tend to think in process terms. Responsibility for processes is fragmented across organizational boundaries. That’s why identifying the company’s major processes is a crucial early step in reengineering.

 After identifying the processes, the leader designates the owners who will guide those processes through reengineering. Process owners are usually individuals who manage one of the functions involved in the process that will undergo reengineering. To do their reengineering jobs, they have to have the respect of their peers and a stomach for reengineering—they must be people who are comfortable with change, tolerant of ambiguity, and serence in adversity.

 An owner’s job is not to do reengineering but to see that it gets done. The owner must assemble a reengineering team and do whatever is required to enable the team to do its job. He or she obtains the resources that the team requires, runs interference with the bureaucracy, and works to gain the cooperation of other managers whose functional groups are involved in the process.

 Process owners also motivate, inspire, and advise their teams. They act as the team’s critic, spokesman, monitor, and liaison. When reengineering team members start to produce ideas that make coworkers in the organization unhappy, process owners shield them from the arrows that others will shoot their way. Process owners take the heat so that their teams can concentrate on making reengineering happen.

 The process owner’s job will not end when the reengineering project is completed. In a process-oriented company, process, not function or geography, will form the basis of organizational structure, so every process will continue to need an owner to attend to its performance.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Call People by Name


President Reagan often is referred to as the greatest communicator ever to serve as President. And for good reasons. He used to speak slowly in a well-modulated voice, looks directly in the person or people he is speaking to, remains calm under pressure and uses simple, easy-to-understand words. Mr Reagan employs many subtle but persuasive techniques in dealing with public. Very importantly, at news conferences which are typically a very difficult presidential task, Mr. Reagan would address reporters by name when accepting a question rather than just indicating with a hand motion which reporter might speak nest. It may seem like a small point, but his method was conducive to help create good relations with the press. Why? Because people cooperate better when they are recognized by name. being addressed by name I a sincere and deeply appreciated compliment. It tells a person, “You are important to me.”

 Lyndon Johnson, the Great “Persuader,” practiced remembering names, and Lyndon Johnson was number one “persuader president” of modern times. He was enormously effective in bringing opposing factions together to get legislation passed.

 Why was President Johnson so effective as a human relations engineer? He worked at it! Long before he succeeded Mr. Kennedy as President, he developed and practiced his own ten rules to make himself more effective in working with people.

 President Johnson’s system for how-to-win-influence-over-people appears below:

  1. Learn to remember names. Inefficiency at this point may include that your interest is not sufficiently outgoing.
  2. Be a comfortable person so there is no strain in being with you. Be an old shoe, old hat kind of individual.
  3. Acquire the quality of relaxed easy-going so that things do not ruffle you.
  4. Don’t be egoistical. Guard against the impression that you know it all.
  5. Cultivate the quality of being interesting so people will get something of value from their association with you.
  6. Study to get the “scratchy” elements out of your personality.
  7. Sincerely attempt to heal every misunderstanding you have had or now have. Drain off your grievances.
  8. Practice liking people until you learn to do so genuinely.
  9. Never miss an opportunity to say a word of congratulation upon anyone’s achievement, or express synpathy in sorrow or disappointment.
  10. Give spiritual strength to people, and they will give genuine affection to you.

 Every person has a name and as Dale Carnegie observed, a person’s name is the sweetest word in our language. People feel bigger and better when called by name because it is their most valuable possession. It gives them a sense of individuality – a feeling of being unique.

Hereare five guidelines for calling people by their names to win their cooperation:

  1. Pronounce the other person’s name correctly.
  2. In conversation, use the other person’s name often.
  3. Use nicknames only when you know they are preferred by the person.
  4. Use a person’s last name until familiarity is established.
  5. Spell the other person’s name correctly.

 “Do you know who I am?” The law of self-interest—the tremendous craving for self-identity—comes through in many little ways.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Balancing Positive and Negative Motivational Considerations


If a strategy implementer’s motivational approach and reward structure includes too much stress, internal competitiveness, and job insecurity, the results can be counterproductive. The prevailing view is that manager’s push for strategy implementation should be more positive than negative because when cooperation is positively enlisted and rewarded, rather than strong-armed by a boss’s orders, people tend to respond with more enthusiasm, effort, creativity, and initiative. Yet it is unwise to completely eliminate pressure for performance and the anxiety it evokes. There is no evidence that a no-pressure work environment leads to superior strategy execution or sustained high performance. There is a deliberate policy to create a level of anxiety. Winners usually play like they’re one touchdown behind. High performing organizations need ambitious people who relish the opportunity to climb the ladder of success, love a challenge, thrive in a performance-oriented environment, and find some competition and pressure useful to satisfy their own drives for personal recognition, accomplishment, and self satisfaction. Unless compensation, career, and job satisfaction consequences are tied to successfully implementing strategic initiatives and hitting strategic performance targets, few people will attach much significance to the company’s vision, objectives, and strategy.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

What’s Your Opinion?


A key part of the optimum result method is to get people to express themselves. Everyone has an opinion about a lot of things: What the company is doing, right or wrong; what’s good and what’s bad about the economy; how the mayor or president is performing; and whether any policy will survive.

 

And many people in a business have opinions about how the enterprise could be better run. The problem is, in most organizations the people who do the work are never asked, “What is your opinion?” “Got any ideas for doing this better?” and “Can you suggest a way to do this in less time?” As a result, a large amount of intelligence is untapped, the people with ideas feel frustrated, and the organization’s performance suffers.

 

A number of things explain, but one thing you should be doing is to get the opinions of your people before making key decisions. The best intelligence often comes from front-line staff. We install the steel we fabricate all over the country. Make it a point to talk with installation crews; ask for their opinions about what our customers are thinking. Maintain a steady flow of opinions, gathering information from your installation and sales people.

 

All people think. Encourage them to tell you what they’re thinking about. When you ask for opinions from employees doing different functions, you accomplish two things. First, you win their cooperation because they’ve had a chance to give you their views. Second, you pick up a lot of good ideas you can turn into profit.

 

Nevertheless, there is a problem when you teach the what-is-your-opinion technique to few managers. Some of them are conditioned to believe that asking other people, particularly subordinates, for their ideas is a sign of weakness. Letting other people express their opinions is a sign of strength.

 

Use the optimum results. It works wonders in getting what you want—a sale, a better job, and cooperation and support.

  • Find out what is the ideal benefit the other person seeks.
  • Tailor what you have to offer to provide that ideal benefit.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

The Shift to Customer Service


You may wonder what, exactly, caused the economic shift to service away from manufacturing. Some of the more prominent reasons are described herebelow:

  • Increased efficiency in technology. Because of the development and improvement of machines and computers, production and quality have increased. Two resulting side effects have been an increased need for service industries to care for the technology, and a decrease in manufacturing.
  • Globalization of the economy: Beginning in the 1960s, when worldwide trade barriers were lowered, a variety of factors have contributed to expanded international cooperation and competition. Since that time, advances in technology, communications, diplomacy, and transportation have opened new markets and allowed decentralized worldwide access for production, sales, and service.
  • Deregulation of many industries: the 1970s saw deregulation of industries (e.g., airlines, telephone) alongwith oil embargoes and political unrest (Vietnam, Iran) reducing US competition while allowing other countries free access to those areas of the world. The rapid deregulation of major US public services, competition (with an emphasis on providing service excellence) has flourished.
  • More women entering the workforce: Because more women are in the workplace, many of the traditional roles in society have shifted out of necessity or convenience to service providers.
  • Desire to better use leisure time: More than ever, workers of developed nations enjoy increasing amounts of leisure time. This has heightened a desire to relax, enjoy children, and do other things they value—people want to use their free time in more personally satisfying ways. To accomplish this, they now rely more heavily on service industries to maintain their desired lifestyles.
  • Expectation of quality service: Most customers expect that they will receive a quality product or service. If their expectations are not met, customers simply pick up the phone to call or visit a competing company where they can receive what they think they paid for. This created a need for more and better trained customer service professionals.
  • Better educated customers: Not only are customers more highly educated, they are also well informed about price, quality, and value of products and services. This has occurred in part because of advertising and publicity by companies competing for market share by the activity of consumer information and advocacy groups.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Behavior of Committees


Committees are formally constituted bodies characterized by periodic, intermittent, or temporary rather than continuous functioning. Purposes for conducting a committee meeting almost always include an objective of gaining or maintaining inter-group coordination and/or cooperation. Staff or subgroup meetings have analogous purposes on the group level of analysis.

 

Committees integrate organizational behavior vertically in the authority hierarchy and/or horizontally across group boundaries. Committees may function primarily as a formal communications medium for one-way dissemination of information from above at one extreme all the way to omni-directional informational sharing (e.g., new projects, problems, etc.) at the other. Two other common committee functions are problem solving (e.g., performing a technical design, cost and schedule feasibility assessment) or decision making (e.g., adjusting and approving departmental overhead budgets for the upcoming three months).

 

There are both advantages and disadvantages to employing committees for any, or any combination, of these functions. The net effectiveness is emergent and is no doubt influenced by the nature of the tasks to be performed, the time available, the people involved, and primary task groups represented as well as other situational factors.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

 

Membership in the Global Business Community


Today we need global cooperation to get things done, and we need to work together on tasks that affect the welfare of people all across globe. Thanks to the Information Age and available global communication networks, there’s no excuse anymore for our shocking ignorance about the world as a whole and each other as individuials. We simply cannot afford not to know. Most managers are still in dark ages when it comes to knowing about their global customers, their options, or the competition. But, how do we begin? And what do we need to know and do differently now that we all live in the same global neighborhood? My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir

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